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WestJet adds flights to U.S. and regional boost starting with Fort St. John, B.C.

Airline competition to heat up as WestJet introduces new flights to Myrtle Beach and WestJet Encore starts flying

WestJet Encore, the new regional airline using Bombardier Q400 turboprops, is expected to announce its first destinations for this summer. Pictured here is WestJet Encore president Ferio Pugliese. (STEVE RUSSELL / TORONTO STAR)

With airline competition heating up, WestJet Airlines is boosting the number of flights from its Toronto hub to Canadian cities and to U.S. sun destinations.

It also announced plans Monday to launch its new regional airline Encore, centred on several B.C. communities including Fort St. John, in the northeastern part of the province.

For Toronto passengers, flights to Orlando increase to 11 times a week from the current seven, and flights to Miami move to eight times a week.

The Calgary-based airline will introduce twice-weekly seasonal service, beginning on May 2, to popular golfing destination Myrtle Beach in South Carolina. It is a route that Air Canada does not serve, but Porter Airlines already offers service from the Toronto island airport.

“It’s a shot across the bow to Porter. These are niche flights,” said airline consultant Robert Kokonis, noting WestJet is clearly looking for a piece of the Myrtle Beach pie.

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Within Canada, WestJet is introducing new non-stop service between Toronto and Fort McMurray, Alberta’s oil boomtown, three times a week.

Flights to Vancouver and Calgary from Pearson airport increase to 11 times a day, an additional two flights a day. Flights to Edmonton, Winnipeg, Regina and Saskatoon also increase.

It is focused on British Columbia, with service to Fort St. John from Calgary and Vancouver, and service between Calgary and Nanaimo on Vancouver Island. As well, it will have offer one daily round-trip flight between Vancouver and Victoria.

Kokonis said it’s no surprise that WestJet Encore is starting service in the west. “They had to be true to their roots, their Western origin,” he said.

For the past year, many towns and cities have lobbied WestJet to set up shop by posting videos and signing petitions. Other destinations are expected to be announced as WestJet takes delivery of more Q400 planes, with a fleet of seven by year’s end.

“We are just getting started,” said WestJet Encore president Ferio Pugliese in a news release. “The communities that are not part of today’s announcement continue to be under consideration as we take delivery of additional aircraft later this year and in the years to come.”

Last week, WestJet reported strong profits for 2012 of $242.4 million, or $1.78 a share, up from $148.7 million in 2011. Still the airline is embarking on a $100 million cost-cutting initiative over the next three years.

Air Canada also turned a profit of $131 million last year, the first time it was in the black since 2007.

WestJet has vowed to bring lower fares to smaller cities, with president and CEO Gregg Saretsky previously saying fares could be cut by as much as 50 per cent with Encore’s arrival.

Initial Encore fares are being advertised at $109 one-way between Fort St. John and Vancouver and Calgary. Once taxes and airport charges are included, they range from about $155 to $172.

On the Fort St. John-Vancouver route, now served by Air Canada Jazz, the lowest one-way fares including taxes and fees range from $313 to $327. But after June 24, Air Canada’s fares are similar to WestJet’s.

Air Canada has said it would respond to its rival’s efforts as it does in a competitive situation. It had already announced expansion plans for its regional service in western Canada, by adding service in smaller centres including Fort St. John.

Kokonis said on the Vancouver-Victoria route, WestJet will also face competition from other smaller operators. While Air Canada has significant frequency – 17 daily round-trips by this summer – WestJet will just start slowly, and eventually add more flights, he said.

With different airlines on that route, Kokonis said airlines will want to keep fare competitive.

Also, starting in April, WestJet is introducing daily service between Calgary and Dallas-Fort Worth, which is a hub for WestJet’s code-share partner American Airlines.

A merger announcement is expected this week between American Airlines, which is in bankruptcy protection, and US Airways, which would make it the biggest airline in the United States, ahead of United Airlines and Delta Air Lines, which have had their own mergers in recent years.

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